MTG announces termination by mutual agreement with HUYA of negotiations on definitive agreement for China Joint Venture and ESL investment

January 21 2020

STOCKHOLM – January 21st, 2020 08.00am CET — Modern Times Group MTG AB (MTG) today announces that MTG and HUYA Inc. (Huya) have mutually terminated the negotiations related to the definitive agreement for the forming of a strategic Joint Venture for esport expansion into China and a minority stake investment in MTG’s portfolio company ESL.

The term sheet agreement was originally announced September 2nd 2019 and has since been subject to customary due diligence and final negotiations. Differing views between the two parties on allocation of contractual risk and other key commercial terms are the primary reasons for the announced termination of the binding term sheet.

“We still believe in the logic of this transaction and its potential for both MTG, HUYA, and for the esport industry globally. However, both parties see a mutual termination of the negotiations as the only way forward for now given the status of the negotiations at this stage. With that said, expansion into the important Chinese esport market continues to be a priority for MTG and we are looking forward to seize opportunities in the near future“, says Jørgen Madsen Lindemann, CEO and President of MTG.

The termination of the negotiation will have no operational impact on ESL in 2020. As previously announced, MTG plans to report its fourth quarter 2019 and full year financial results on February 6th 2020.

This information is information that MTG is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08.00am CET on January 21st 2020.

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